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Avenue Capital provides $45m growth capital facility to Silk

The Massachusetts AI data platform company will use the scale-up debt financing to expand engineering and cloud-provider coverage as agentic AI workloads move toward production.

Undiluted News Desk1 min read

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About the deal

Borrower
Silk
Amount
$45m
Facility
Growth credit
Lender
Avenue Capital
Sector
AI & Machine Learning
Region
North America
Country
United States
Announced

Avenue Capital Group has provided a $45 million growth capital facility to Silk, giving the Boston-area company additional debt financing to support its next phase of expansion. The facility was provided through Avenue Capital Group's Growth Lending Strategy, which focuses on growth-stage companies.

Proceeds will be used to expand engineering investment in Silk's AI data platform, scale go-to-market coverage of neocloud, sovereign cloud and inference cloud providers, and deepen the company's enterprise footprint across Amazon Web Services, Microsoft Azure and Google Cloud.

Founded and led by CEO Dani Golan, Silk is a Boston-area provider of a purpose-built data platform for agentic AI workloads. The company positions its software-defined cloud data layer as infrastructure for enterprises running data-intensive AI applications in production across major public cloud environments.

Avenue said its underwriting focused on Silk's recurring enterprise revenue base and its position as agentic AI shifts from pilot projects into production deployments. Tony Pandjiris, senior portfolio manager of Avenue Capital Group's Growth Lending Strategy, said the data layer is becoming a bottleneck for AI adoption, a theme underpinning the lender's support for Silk.

The new facility follows a separate debt commitment in January 2025, when Trinity Capital Inc. committed $30 million in growth capital to Silk Technologies. On the equity side, Silk has historically been backed by Sequoia Capital and S Capital, among others, and the latest announcement cited continued support from Sequoia Capital, S Capital VC, Vintage Investment Partners, Ibex Investors, West Coast Equity Partners and other new and existing investors.

Avenue Capital Group is a global investment firm with more than $9 billion in assets under management. Its Avenue Growth Lending platform finances high-growth, venture-backed technology and life sciences companies, typically serving borrowers that sit between the capacity of commercial banks and larger debt funds, with initial commitments generally ranging from $5 million to $50 million.

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